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Cloud Computing: Outsourcing will assume a more defined role in the cloud era

Cloud is forcing CIOs to manage a more complex, hybrid environment that includes externally provided cloud services along with their own IT services and older legacy applications.

Overview

Making your business cloud-centric, to cite a common analogy, is as simple as flipping a switch. Unfortunately, this conveniently ignores the fact that enterprises require much more than just raw power.

Cloud computing is certainly simplifying some
aspects of information technology. It’s also forcing Chief Information Officers to negotiate a more complex, hybrid environment that includes externally provided cloud services along with a business’ own IT services and legacy applications.

This “new normal” requires consultants bring an ability to provide sound advice on appropriate business model design based on multiple service providers. They also need to harness the innovations arising from the interaction of these providers.

As such, we believe we’re at the cusp of a new era in outsourcing.

Given the challenges the cloud presents, the role of the value-added outsource provider—while it may change—is not going away any time soon.

Analysis

We see a few key challenges: for one, integrating data across multiple services.

Part and parcel to that is gaining an understanding of the end-to-end business process being serviced, so a business can be confident its employees and customers will be properly served.

This requires specialized skills in service integration, as well as processes and tools that automate and monitor IT to ensure coordination and oversight between outsourcers and internal functions.

In short, it means not just integrating cloud services, but all the services IT provides the business.

As businesses increasingly rely on the cloud, we envision three classes of outsourcing services and providers emerging: